Place Strategy for Dairy Farmers Milk

Place Strategy for Dairy Farmers Milk

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Place Strategy for Dairy Farmers Milk

Current situation

I do the research in Woolworths supermarket of the maquarie shopping
center. When I enter into the supermarket, The first products I saw
are the fresh vegetable and fruits, such as banana, strawberry, apple,
etc. on the left is the fresh bread aisle, and there is a single aisle
which provide the valued produces. Walk along the bread shelves, then
I see the deli which sale lunchmeat, bacon and the like. When you turn
right, you can see the frozen area, customers can choose refrigerated
items here, and White milk fridge is on the left end, just near the
deli. In Woolworths Home Brand is placed in the left, Pura is in the
middle of the fridge, and they provide full cream milk, skim milk, and
Lite milk, In the right section is Dairy Farmers, And they only
provide Dairy Farmers Best, 1 liter, 2 liter, and Lite White, 2litre,
That means a range of limited pack sizes and categories for consumes
to choose. The fridge is divided into 4 shelves, on the top is the
Skim Milk with small pack size, the second is displaced with 1lt milk,
the third is 2lt milk, and the bottom is the 3lts.

Opposite the frozen area there are 12 aisles displace products from
food to shampoo, and even garden care.

Competition

Direct competition
==================
Since the Home Brand and ‘Woolworths’ is the Woolworths own-brands,
supermarkets are all considering rationalizing the name brands they
stock and supporting their own house brand, they put their products on
the most eye-catching place to attract customers’ attention, and
provide a range of pack size for customers, While dairy farmers
products are less obvious, and they do not provide 3lt pack size on
the bottom shelf. There are just 1lt and 2lt milk on the first and
second level in the right fridge, Woolworths only stock my
competitions’ products, the reason is obvious: they can make more
money from that product than they would from a big manufacturer.

The direct competitor of Woolworths is Franline, this supermarket is
also located on level 3, and it’s near the parking place, So it’s more
convenient for customer who drive a car for shopping.

Indirect competition
====================
Opposite the White milk fridge is the flavored milk aisle, juice and
tea aisle, etc. shoppers have multiple choices when they feel thirsty.

There is a food court on level 3, and more than 15 caf© shops are
located in this shopping center, since some customers of the shopping
center are students and staff of nearby office towers, when they find
some drinks, they can choose many items besides milk.

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Related Searches



Desired state

Location

It’s a 4 level shopping center with its entrance on level 4, and
Woolworths located at level 3. That means people who don’t drive a car
to the shopping center can have a quick access to the Woolworths. And
after shopping, it’s easier for consumers carrying lots of things to
get out of the shopping center, a 2lt milk is about 2 kilo, as 3lt
milk, it’s even about 3 kilo, if the supermarket is not located near
the entrance, the consumer might not purchase the heavy products when
they are shopping.

Certainly, Woolworths also provide car-parking place for their
customers who drive a car to go shopping, and I found that customers
could have a quick access to the Woolworths from parking place.

In conclusion, the location of the Woolworths is very convenient for
their customers.

Produce Section

No one likes their bananas bruised or their strawberries smashed, so
it makes sense to buy produce at the end of a shopping trip. However,
because produce is perishable, supermarkets want to get rid of it
quickly. And since consumers tend to spend more money at the beginning
of their shopping trip than at the end, produce sales are markedly
higher when it is placed at the beginning of the store 1. Therefore,
fresh fruits and vegetables are usually located in the first aisle. So
as milk, since it’s dairy product, supermarket want to sale it as soon
as possible, so the staples like bread, milk, meat, and produce are
usually spread throughout the store and generally on the outside
walls. This means that there are lots of items between the things you
really need and more opportunities for impulse buying.

Consumers tend to shop more quickly as they approach the shelf, which
contain the products they want. So during the 2 hours research, I
found that most shoppers open the left fridge to get the Home Brand
Milk just because it’s the nearest one when they turn right to get to
the next aisle.

Product Placement

The location of items that are attractive to shoppers are usually on
the shelves at our eye level, Some of your best buys are up high or
down low on the shelves. For examples, I notice that products of the
same catalogue are displaced on the shelves according to the price. In
other words, the more expensive ones are displaced at the eye level,
while the cheaper ones are higher or lower on the shelves. And in
cereal aisle I found that some snack for children are on the bottom of
the shelf, I think it’s used to catch children’ eyes. And items at the
end of the aisle are also designed to catch consumers’ eyes.

Products placed at eye level tend to sell better than similar products
at different heights. Most people don’t even look at a product that is
40 cm (16 in.) or less from the floor 2. Woolworths put the white milk
on the left of the frozen area the place face to the entrance to
catch shoppers’ eyes, because the milk is dairy products, they want to
sale them quickly. Although Dairy Farmers put their milk at adults’
eye level, they put them on the right fridge that is not very obvious
for customers.

Strategy

As a manager, I think we should do something to attract consumer’s
attention for our products:

(1). Customers get into the supermarket to find the range of products
that cater to their needs, that means a range of pack sizes for
regular milks and a range of specialty milks. So some consumers are
still confused by specialty milks. May be we should consider a new
approach to grouping products in the fridge to help the shoppers
decide which is the milk for them. For example, we can clearly
differentiate milks in the fridge by customer type rather than milk
type; maybe have a section for families, a section for young males,
and a section for organic and biodynamic milks.

(2). We should try to provide 3lt size milk to encounter the
competition of Home Brand and Pura Milk.

(3). We could put some milk in small pack size in the fridge near the
checkouts, because I found that Woolworths just put coca and juice in
the fridge. So while customers are waiting in the queue for payment,
they can get milk instead of coca or juice when they feel thirsty.

Reference

1. Dairy Farmers: our product. Retrieved August 20, 2005, From:
http://www.dairyfarmers.com.au

2. Larson, Jeffrey S., Bradlow, Eric and Fader, Peter, "An Exploratory
Look at Supermarket Shopping Paths". International Journal of Research
in Marketing, 2005 http://ssrn.com/abstract=723821

3. Stella Lee, Caroline Liffman, and Cindy McCulligh 2002, The
Supermarket Tour, OPIRG McMaster, Canada

4. Steve Brearton, “Grocery-store Confidential,” Toronto Life
Magazine, September 15, 1997

5. Robert Matas 1987, “Stocking Shelves Has a Hidden Cost,” Globe and
Mail

6. Tom Eklof, “Triggering More Sales Through POP, Progressive Grocer
67, vol.9, no.19.
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